Bursa said on Sept 17,  to facilitate the proposed equity participation, Bursa will consolidate all its derivatives businesses into Bursa Malaysia Derivatives and its subsidiaries.

Under the corporate exercise, Bursa Malaysia Derivatives will acquire the entire issued and paid-up share capital of Bursa Malaysia Derivatives Clearing Bhd from Bursa for a cash consideration of RM37.1 million.

On the purchase consideration of RM55.6 million for the 25% stake, it was based on the  enterprise value of Bursa Malaysia Derivatives Group post-proposed restructuring of RM214.7 million computed based on the proforma consolidated (EBITDA) of Bursa Malaysia Derivatives for FY ended Dec 31, 2008 and the proforma consolidated net cash in Bursa Malaysia Derivatives post-proposed restructuring of RM7.6 million.

Bursa said the three-pronged CME Group collaboration would fulfill Bursa's strategic intent of globalising the Malaysian CPO, further developing the Malaysian derivatives industry and to internationalise Bursa. 

The acquisition was a follow-up to an agreement inked on Aug 11, where CME Group would acquire a minor equity stake in the derivatives business and operations of Bursa Malaysia under a proposed collaboration to develop a US dollar crude palm oil futures contract (FCPO).

CME Group chief executive officer Craig Donohue had then said CME would acquire an equity stake in the derivatives business and operations of Bursa Malaysia and Bursa would in turn have equity stake in CME Group.

The minority share swap would be part of the strategic partnership to develop a US dollar FCPO using Malaysia's ringgit contracts for trading at CME Globex -- which is CME Group's electronic trading platform.